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Interim Report January – September 2022

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The market situation is still uncertain and difficult to assess with high inflation and rising financing costs. Buyers of forward funding projects are still waiting, and we did not have any project sales during the quarter. We are now seeing a sharp slowdown in new housing construction in Sweden. We have chosen to postpone several future projects that are not yet being constructed and we have reviewed our fixed costs. The results were weighed down by negative valuation effects, write-downs of projects and one-off effects. Thanks to our excellent building rights portfolio, and all our skilled employees, coupled with good liquidity and strong owners, we are however well equipped to handle the current market situation.

1 January-30 September 2022

  • Net sales amounted to SEK 220 m (552).
  • The operating loss was SEK 512 m (+64), of which SEK 195 m (107) refers to changes in the value of investment properties.
  • The loss before tax for the period was SEK 641 m (-70) and the loss after tax amounted to SEK 581 m (-98).
  • Earnings per share, after deductions for minority shares, was SEK -13.96 (-2.25).

 

1 July-30 September 2022

  • Net sales amounted to SEK 32 m (93).
  • The operating loss was SEK 427 m (+90), of which SEK -227 m (65) refers to changes in the value of investment properties.
  • The loss before tax for the period was SEK 480 m (+43) and the loss after tax amounted to SEK 433 m (+29).
  • Earnings per share, after deductions for minority shares, was SEK -10.57 (0.74).

 

Significant events 1 July-30 September 2022

Carried out a review of fixed costs and adjusted the workforce according to the market situation.

 

Significant events after the end of the quarter

Received a new unconditional shareholder contribution of SEK 150 m from Magnolia Bostad's owner HAM Nordic AB.
 

 

For more information, please contact:

Johan Tengelin, CEO

johan.tengelin@magnoliabostad.se

 

Fredrik Westin, Deputy CEO & CFO

fredrik.westin@magnoliabostad.se

+46 72 720 00 06

 

The information Magnolia Bostad publishes in this report is required in accordance with the EU Market Abuse Regulation (EU) No 596/2014. The information was submitted for publication, through the agency of the contact persons, on 27 October 2022 at. 07.45 a.m. CEST.

Magnolia Bostad AB, CIN 556797–7078, is a leading urban developer that develops new residential properties primarily rental apartments but also tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. Housing is being developed both for sale and for self-management. Our work is based on a holistic approach where the operations are conducted in a way that promotes long-term, sustainable urban development. More information is available at  www.magnoliabostad.se

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